Bitcoin Tops $81,000 as Crypto Market Gains Amid Volatility After Fed Holds Rates Steady

TradingKey - Fed Stands Pat as Expected, Crypto Assets Rally Strongly as Bitcoin Reclaims $81,000

On October 29, Beijing time, the Federal Reserve (Fed) released its latest FOMC rate decision, maintaining the target range for the federal funds rate unchanged at 3.75%–4.00%. Following the announcement of this decision, which aligned with market consensus, global risk appetite rebounded significantly.

Boosted by the strength of U.S. tech stocks and receding macroeconomic uncertainty, Bitcoin (BTC) successfully broke through the $81,000 mark on high volume after shaking off previous range-bound consolidation between 79,000 and 80,000, reaching a high of $81,560 today.

Bitcoin price chart, source: TradingView

As this meeting was the last interest rate decision before the U.S. midterm elections (November 3), the Fed chose to keep rates on hold, avoiding the extreme shock that major policy moves could inflict on market liquidity and boosting bullish market confidence.

Notably, on the eve of the Fed decision, spot Bitcoin ETFs had already recorded net inflows for three consecutive days, with daily inflows on both October 26 and 27 exceeding $100 million, indicating that traditional finance (TradFi) institutional capital had already completed contrarian positioning ahead of the decision on expectations that bad news was fully priced in.

Currently, the futures market expects a risk of a minor 25-basis-point adjustment at the December meeting. However, as long as subsequent inflation data does not surge sharply, a stable liquidity environment will continue to support risk assets, and Bitcoin is still expected to reach the $90,000 mark.